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The International Mobility of Billionaires

Author

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  • Sanandaji, Tino

    (Research Institute of Industrial Economics (IFN))

Abstract
Relying on Forbes Magazine annual rankings for two decades, 1625 billionaires and their countries of birth and residence are identified, most of whom are self-made entrepreneurs. 13 percent of billionaires reside in a country other than that of their birth. Migration is linked to distance, to cultural ties and to the per capita income of the respective source and host country. Capital taxes have a statistically significant though economically modest effect. 80 percent of those who moved migrated from a lower per capita income to a higher per capita income country and 70 percent from a higher tax country to a lower tax country. Self-made billionaires are more likely to move to countries with larger market sizes. Overall surprisingly few billionaire entrepreneurs migrate. Previous research has found that self-employed tend to work in their home community at higher rates than employees. Entrepreneurship too appears to be local, with private equity be characterized by a home bias. One explanation may be the wide dispersion and local nature of information as emphasized by Hayek.

Suggested Citation

  • Sanandaji, Tino, 2012. "The International Mobility of Billionaires," Working Paper Series 904, Research Institute of Industrial Economics, revised 02 Dec 2014.
    • Handle: RePEc:hhs:iuiwop:0904
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    3. Magnus Henrekson & Tino Sanandaji, 2020. "Measuring Entrepreneurship: Do Established Metrics Capture Schumpeterian Entrepreneurship?," Entrepreneurship Theory and Practice, , vol. 44(4), pages 733-760, July.
    4. Magnus Henrekson & Tino Sanandaji, 2015. "Superentrepreneurship and global imbalances: closing Europe’s gap to other industrialized regions," Chapters, in: Antonina Bakardjieva Engelbrekt & Moa Mårtensson & Lars Oxelheim & Thomas Persson (ed.), The EU’s Role in Fighting Global Imbalances, chapter 4, pages 58-88, Edward Elgar Publishing.
    5. Yasuyuki Motoyama & Sameeksha Desai, 2022. "Stickiness of entrepreneurs: an exploratory study of migration in two mid-sized US cities," Small Business Economics, Springer, vol. 58(4), pages 2139-2155, April.

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    More about this item

    Keywords

    Entrepreneurship; Migration; Taxes;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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